a. What are some possible reasons the price of a stock drops on the announcement of a

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a. What are some possible reasons the price of a stock drops on the announcement of a new equity issue?

b. Explain why we might expect a firm with a positive NPV investment to finance it with debt instead of equity.

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Essentials Of Corporate Finance

ISBN: 9781265414962

11th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Jan 02, 2023 07:08 AM

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a. What are some possible reasons the price of a stock drops on the announcement of a

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Essentials Of Corporate Finance

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